Stocks
"This represents ownership in a company and entitles the holder to a share of its profits."
What is a stock?
"This type of bond is issued by the U.S. government and is considered one of the safest investments."
What is a Treasury bond?
"CDs are offered by these institutions and usually have fixed interest rates."
What are banks or credit unions?
"This is the primary advantage of savings accounts over checking accounts."
What is earning interest?
"This type of mutual fund seeks to replicate the performance of a specific index."
What is an index fund?
"The term for a stock market that is rising and expected to continue rising."
What is a bull market?
"A bond’s interest payment to the investor is often referred to by this term."
What is a coupon?
"The penalty for withdrawing money from a CD before this term ends."
What is the maturity date?
"Savings accounts are often used for this financial safety net."
What is an emergency fund?
"The fee charged by some mutual funds when shares are bought or sold."
What is a load fee?
"This type of stock pays regular dividends and is considered less risky than growth stocks."
What is a dividend stock?
"When a bond is sold for less than its face value, it is said to be sold at this."
What is a discount?
"CDs are insured by this federal organization up to $250,000."
What is the FDIC?
"This type of savings account offers higher interest rates but requires a larger minimum balance."
What is a high-yield savings account?
"This type of mutual fund invests primarily in bonds."
What is a bond fund?
"The first sale of a company's stock to the public."
What is an IPO (Initial Public Offering)?
"A bond with no set maturity date that pays interest forever."
What is a perpetuity bond?
"A type of CD where the interest rate adjusts periodically during the term."
What is a variable-rate CD?
"The federal regulation limiting certain types of withdrawals from savings accounts."
What is Regulation D?
"Unlike mutual funds, these similar investments trade on stock exchanges throughout the day."
What are ETFs (Exchange-Traded Funds)?
"This index tracks the performance of 500 large-cap companies in the U.S."
What is the S&P 500?
"The risk that interest rates will rise, reducing the value of an existing bond."
DAILY DOUBLE:
Clue: "This rating agency assigns credit scores to bonds to reflect their creditworthiness."
What is interest rate risk?
What is Moody’s (or S&P, or Fitch)?
"This type of CD allows you to withdraw funds at specific intervals without penalty."
What is a no-penalty CD?
"Savings accounts at most U.S. banks are insured by this government entity."
What is the FDIC?
"The risk that the mutual fund's returns won't meet its benchmark index."
FINAL JEOPARDY
"This investment strategy involves spreading money across different asset classes to reduce risk and improve potential returns.
What is tracking error?
What is diversification?